one or Honey Money...
Jesse's Café Américain:
Is Money Supply a Relative Absolute?If you have one thousand dollars in cash, in your pocket, is it completely equivalent to one thousand dollars worth of honey which you have at home in your pantry, in terms of its affect on inflation or deflation?
Forgiving the pun, the honey is decidedly less liquid than the cash.
Does it matter who is holding the money? What if the bulk of the money being added to to the economy is being given to gamblers in Las Vegas, rather than lets say farmers in Pennsylvania. Is there a difference in that money's effect on inflation or deflation?
The point is not to provide answer to these questions at this time, since this is basis for a new perspective in economics which is still in its early states.
Rather, it is to cast doubt on the certainty that what we call money is always and everywhere equivalent in force and power and influence as an economic actor no matter where and how it is held.
Some observations:
a) Money is an approximation of value at best, because we also don't know what the value of honey is either, and not all honey will be put to good use. Same as with money.
b) Money and honey, both have to flow, or they are not of much use.
c) Nevertheless money and honey function as value stores.
d) Did you know that wild honey comes from lice shit?!
Flickr impressions:
